Question
Gardial Fisheries is considering two mutually exclusive investments. The projects' expected net cash flows are as follows: Expected Net Cash Flows Time Project A Project
Gardial Fisheries is considering two mutually exclusive investments. The projects' expected net cash flows are as follows:
Expected Net Cash Flows
| Time | Project A | Project B |
| 0 | -$375 | -$575 |
| 1 | -$300 | $190 |
| 2 | -$200 | $190 |
| 3 | -$100 | $190 |
| 4 | $600 | $190 |
| 5 | $600 | $190 |
| 6 | $926 | $190 |
| 7 | -$200 | $0 |
I really appreciate all of your help for this! I am so incredibly lost, so please post the working file so I can see how you got to the answer! Again, thank you for your help!
a. If each project's cost of capital is 11%, which project should be selected? If the cost of capital is 17%, what project is the proper choice? @ 11% cost of capital WACC = NPV A = @ 17% cost of capital Use Excel's NPV function as explained 17% in this chapter's Tool Kit. Note that the 11% $242.65" $206.13 WACC = NPV A = NPV B= range does not include the costs, which $41.25 are added separately VA= $91.41 NPV BStep by Step Solution
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Short Term Financial Management
Authors: Ned C. Hill, William L. Sartoris
3rd Edition
0023548320, 978-0023548321
